Escaping a Bad Real-Estate Bet

By

Kelly Kearsley

Sept. 2, 2014 9:31 a.m. ET

The couple came to financial adviser Jim Davis swimming in debt and contemplating bankruptcy.

They had binged and bought three condos in Florida during the real-estate boom, but by 2011 were underwater by more than $300,000 on those mortgages. Even after receiving rents, they were losing $4,000 a month from servicing the loans and paying for repairs and other carrying costs.